Stellantis Provides China's Leapmotor with a Means to Avoid Europe's Burdensome EV Tariffs | Carscoops

      The company is preparing to manufacture electric vehicles in Spain alongside Stellantis, circumventing EU tariffs and transforming Europe's affordable electric vehicle market.

      Stellantis will permit Leapmotor to produce vehicles at one of its manufacturing plants in Spain, allowing Leapmotor to avoid EU import tariffs that can reach as high as 30.7 percent. The B10 electric SUV is anticipated to be the first model to enter production.

      After making a significant investment in Leapmotor, Stellantis is transitioning from being a shareholder to an industrial collaborator. In 2023, the company invested €1.5 billion ($1.77 billion) for a 20 percent stake in the Chinese manufacturer and acquired a 51 percent share in its international division, gaining rights to sell and distribute its vehicles outside of China. This partnership is evolving, with Leapmotor expected to manufacture cars at one of Stellantis’s facilities in Spain.

      Stellantis CEO Antonio Filosa confirmed this development during a recent financial event. Although he did not disclose which Spanish facility would be involved, the agreement will allow Leapmotor to bypass the high tariffs imposed by the European Union on Chinese-built electric vehicles.

      “We have recently announced an industrial partnership to provide Leapmotor capabilities at one of our Spanish plants to produce their cars on their platform,” Filosa stated during the event, as reported by Auto News. “Production will commence very soon.”

      While Stellantis has not specified which Leapmotor models will be manufactured in Spain, a recent report suggests that the B10 electric SUV is the most likely candidate. Leapmotor is believed to be investing up to $200 million in one of Stellantis’s Spanish factories to facilitate this production. Zaragoza has been mentioned as a possible site for Leapmotor’s local production, as Stellantis is establishing a large battery gigafactory there in collaboration with CATL, which is expected to open next year.

      Interestingly, Leapmotor has already ventured into European manufacturing, having previously assembled the T03 minicar at Stellantis’s facility in Tychy, Poland, although that production ceased in April. There were also plans to manufacture the B10 in Poland, but those plans have since been scrapped.

      Leapmotor unveiled the European version of the B10 late last year and has recently opened orders for it. Targeting competitors such as the Kia EV3, BYD Atto 3, and Honda Kona Electric, the B10 is priced starting at €29,900 ($35,400).